Why does the government allow the banks to commit fraud through fractional reserve banking?

If I had and lent out . Would I still be able to say I have still had .

OF COURSE NOT, because I only have .

If you and I cannot do this, why does the government allow the banks to commit this fraud on the American people which has destabilized our entire banking system and economy.
Alex – Fractional Reserve banking has only been around from the last 200 years or so. Are you saying there were NO loans made before this time period?